A £12M fund to pay for affordable housing has been set up in North Yorkshire.

The affordable housing capital investment fund is a three-year programme created by the county council, the Housing Corporation and local authorities.

Using money raised through council tax on second homes, it aims to develop at least 100 affordable homes a year for the next three years and will pay for initiatives aimed at increasing the range of activities tackling the lack of affordable housing.

County council leader Councillor John Weighell said: "The lack of affordable housing affects communities right across North Yorkshire. It is a particular problem for young people on lower incomes, particularly in a rural county like ours.

"The county council is committed to new and creative ways of dealing with local problems such as affordable housing. We aim to secure an extra £4m a year which, with our partners, we can move quickly into getting some new, affordable housing schemes."

A Housing Corporation spokesman said: "There is real need for affordable homes throughout North Yorkshire and this proposal could provide a way to stretch the money we provide, to build more homes."

The council will consult shareholders and potential partners in the coming months.